Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRA19-P03-1 Topic 2 Question 55 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam
Question #: 55
Topic #: 2
[All CIMAPRA19-P03-1 Questions]

COM is a well established company in the construction industry The company was founded by the Mac family 30 years ago and several family members still serve on the Board The company obtained a listing five years ago The Board has an appropriate balance between executive and non-executive members It also has audit remuneration and nomination committees The average age of board members is 68

COM is profitable but profit margins have been falling steadily and this year's revenues are lower than it was achieved last year The Board recognis thai it does not have a long term strategy in place and has been losing business to newer, more aggressive competitors

Which THREE of the following statements are correct?

Show Suggested Answer Hide Answer
Suggested Answer: A, B, E

by Viola at Sep 18, 2024, 11:21 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-P03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Avery
10 months ago
The board members must be napping if their average age is 68. Time for some fresh blood!
upvoted 0 times
Veronique
9 months ago
B) The nomination committee should have had a succession plan in place for directors.
upvoted 0 times
...
Arlyne
9 months ago
The board needs younger members with fresh ideas.
upvoted 0 times
...
Clare
9 months ago
E) The non-executive directors should have challenged the lack of long term strategic planning
upvoted 0 times
...
Brice
10 months ago
A) The remuneration committee should consider incentives such as share options to encourage the Board to focus on COM's long term strategy
upvoted 0 times
...
...
Kimbery
10 months ago
The non-executive directors should have challenged the lack of long-term strategic planning. That's their job, isn't it? They need to earn their keep.
upvoted 0 times
Reiko
9 months ago
D) The audit committee should have alerted the Board to the impact of falling profit margins
upvoted 0 times
...
Janna
10 months ago
E) The non-executive directors should have challenged the lack of long term strategic planning
upvoted 0 times
...
Horace
10 months ago
A) The remuneration committee should consider incentives such as share options to encourage the Board to focus on COM's long term strategy
upvoted 0 times
...
...
Joanne
10 months ago
I'm not so sure about the nomination committee operating for the benefit of the directors. Shouldn't they be looking out for the company's best interests?
upvoted 0 times
Eulah
10 months ago
E) The non-executive directors should have challenged the lack of long term strategic planning
upvoted 0 times
...
Christa
10 months ago
B) The nomination committee should have had a succession plan in place for directors.
upvoted 0 times
...
Yvonne
10 months ago
A) The remuneration committee should consider incentives such as share options to encourage the Board to focus on COM's long term strategy
upvoted 0 times
...
...
Aron
10 months ago
The audit committee should have definitely alerted the board to the impact of falling profit margins. That's a crucial oversight.
upvoted 0 times
...
Melina
11 months ago
I believe option E is correct as well. Non-executive directors should have challenged the lack of long term strategic planning.
upvoted 0 times
...
Nathan
11 months ago
I agree with Lenny. Option D is also correct because the audit committee should have alerted the Board about falling profit margins.
upvoted 0 times
...
Geraldo
11 months ago
Absolutely, the nomination committee should have had a succession plan in place for the directors. This oversight is concerning.
upvoted 0 times
Bettina
10 months ago
E) The non-executive directors should have challenged the lack of long term strategic planning
upvoted 0 times
...
Verda
10 months ago
B) The nomination committee should have had a succession plan in place for directors.
upvoted 0 times
...
Ben
11 months ago
A) The remuneration committee should consider incentives such as share options to encourage the Board to focus on COM's long term strategy
upvoted 0 times
...
...
Cristal
11 months ago
The remuneration committee should definitely consider incentives like share options to encourage the board to focus on the company's long-term strategy. That's a no-brainer.
upvoted 0 times
Jesus
11 months ago
E) The non-executive directors should have challenged the lack of long term strategic planning
upvoted 0 times
...
Arlie
11 months ago
A) The remuneration committee should consider incentives such as share options to encourage the Board to focus on COM's long term strategy
upvoted 0 times
...
...
Lenny
11 months ago
I think option A is correct because it's important to incentivize the Board to focus on long term strategy.
upvoted 0 times
...

Save Cancel